Stuart Anderson MP has accused the government of not listening to the needs of people living in rural areas, as it pushes ahead with its reforms to council tax.
In his representation to the Autumn Budget consultation, Stuart had urged the Chancellor to deliver equitable funding that recognises the unique challenges of delivering public services in rural areas.
However, Ministers have now watered down a formula which had factored 'remoteness' into funding allocations. This would have accounted for the extra cost of delivering services in large rural and remote areas.
This is despite evidence submitted to the Fair Funding Review by the County Councils Network (CCN) having found that counties like Shropshire had experienced the biggest increase in demand for support.
The formula will now only be applied to social care. Stuart has said that this overlooks other factors such as the cost of home-to-school transport and the higher volume of fuel used in refuse collection.
Last year, the government scrapped the Rural Services Delivery Grant that was introduced in 2013/14 and had recognised the extra challenges of delivering public services in remote and sparsely populated areas.
It was replaced with a £600 million Recovery Grant that was targeted towards more urban areas, which Ministers had said was a temporary measure while a 'needs assessment' was conducted.
Ministers have now announced that the grant will be retained for the rest of this Parliament. However, analysis has found that only 3% of the grant will go to rural areas like Shropshire.
Responding to the reforms, Stuart has said that it will drive a wedge between rural and urban communities by shifting more council tax out of the areas in which it is paid.
The CCN has found that 33 councils - including Shropshire - now face a real-terms reduction in funding, unless they increase their council tax by five per cent over the next three years.
Just this week, Shropshire's Council's auditor's annual report has highlighted significant weaknesses in financial sustainability.
Meanwhile, the Council has forecasted a shortfall of more than £12 million, having declared a financial emergency in September 2025.
It also follows media reports that councils could be allowed to hike council tax above the 5% cap without a referendum to compensate areas hardest hit by the reforms.
This is despite Labour in opposition having previously pledged "not one penny more" on your council tax. Council tax in rural areas already stands at an average of 20% more per head than in urban areas.
On average, council tax increased by six per cent between 1997 and 2010. Council tax bills doubled in this time – representing an extra £751 a year on a Band D home.
Through the Localism Act 2011, the Conservatives ensured residents had the power to veto rises of over three per cent for council tax and two per cent for adult social care.
This gave residents security from unexpected and excessive council tax rises, while giving councils the powers to raise the revenue they need.
Average percentage increase since 2010 has been just three per cent. However, the Office for Budget Responsibility has forecast that council tax receipts will increase by 34 per cent by 2029-30.
Stuart has added that deprivation is not the only driving force behind the increased cost of local services, which also correlate with other factors such as age and disability.
2021 Census data showed that the local authorities with the highest proportions of older residents are now mainly coastal and rural areas like Shropshire.
In South Shropshire, almost a third of residents are aged 65 and above. This is compared to around a sixth of population for urban areas.
Stuart Anderson MP said:
"Despite my ongoing campaign, I am greatly disappointed that the government has still not listened to the very real concerns of people in rural areas like South Shropshire. Rural taxpayers are set to foot the bill for the government's botched council tax reforms. Having last year scrapped dedicated funding for rural councils, Ministers have now watered down a formula which they promised to factor 'remoteness' into funding allocations. This would have accounted for the extra cost of delivering services such as home-to-school transport in remote areas like ours. This drives a wedge between rural and urban communities by shifting more council tax out of the areas in which it is paid - despite evidence that deprivation is not the only driving force behind the increased cost of local services, which correlate with factors that are more prevalent in rural areas such as age and disability."
